Business, 05.05.2020 05:39 brooklynmikestovgphx

McCaskey Corporation uses an activity based costing system with the following three activity cost pools: Activity Cost Pool Total Activity Fabrication 40,000 machine hours Order Processing 500 orders Other Not applicable The other activity cost pool is used to accumulate costs of idle capacity and organization sustaining costs. The company has provided the following data concerning its costs: Wages and Salaries $420,000 Depreciation $100,000 Occupancy $120,000 Total $640,000 The distribution of resource consumption across activity cost pools is given below: Fabrication Order Processing Other Total Wages and Salaries 5% 80% 15% 100% Depreciation 15% 45% 40% 100% Occupancy 25% 50% 25% 100% The activity rate for the Fabrication activity cost pool is closest to:

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McCaskey Corporation uses an activity based costing system with the following three activity cost po...